Manufacturing in Oil-Producing Countries in Sub-Saharan Africa: The case of Congo-Brazzaville

This article attempted to verify the effects of Dutch disease on the manufacturing industry in Congo using econometric tools and assessed the nature of the relationship between manufacturing sector growth and other macroeconomic variables such as the real effective exchange rate, government spending, etc. Econometric analyses found that the econometric results of the expenditure effect model and the resource reallocation effect model support the Dutch disease hypothesis in Congo. The country's economy has experienced the consequences of Dutch disease. We propose several solutions to protect against this scourge, which has a detrimental effect on the Congolese economy. First, the government must establish effective fiscal governance. Second, diversify the economy to limit fluctuations in national revenues, which depend exclusively on oil exports.